U.S. data center capacity growth projections appear to be on track for 2026 and 2027 despite mounting opposition to projects that support the build-out of artificial intelligence technologies.
Goldman Sachs now projects that total U.S. data center capacity will reach 64 gigawatts by year’s end, an increase in its prior forecast by 5 gigawatts. But the financial services firm also decreased its 2027 forecast by 5 gigawatts, expecting it to reach 90 gigawatts in that year. U.S. capacity stands at about 62.7 gigawatts, according to energy data firm Cleanview.
The latest big development announcements include plans in Virginia by LG Electronics to build its first U.S. plant focused on production of chillers for data center cooling. On the investment side, facility operator Sabey Data Center Properties reported a significant new commitment from global equity firm Ares Management Corp. to support expansion.
Nearly 400 U.S. cities and towns, along with at least 14 states, are considering moratoriums or other restrictions on data center development. This comes as more than 1,500 data center projects are in various stages of planning nationwide, according to the Pew Research Center.
“While U.S. data center development faces increasing political and community opposition, project data and our updated capacity estimates suggest that the U.S. data center growth outlook through 2027 remains largely unchanged,” Goldman analysts said in a research note issued Sunday.
Goldman’s 2026-2027 projections are based on its forecast of a 38% increase in U.S. power demand in 2026 and another 38% rise in 2027, much of it driven by data centers.
A single gigawatt is roughly enough to power up to around 1 million homes, based on energy industry standards. Power consumption plays a big part in nationwide opposition to data centers, with communities concerned about energy, water and land usage amid worries that projects could also drive up utility bills for residents and businesses near the facilities.
Several technology and energy firms have pledged to pay costs for needed utility upgrades as states and cities seek to put those policies into law. Data center projects increasingly include on-site power generation facilities designed to prevent taking power from regional grids, but those components add considerably to development costs.
Goldman previously projected that U.S. capital investment in data centers and related AI support systems would hit $765 billion for 2026 alone. The firm expects cumulative global capital spending to reach $7.6 trillion by 2031.
More companies boost investment
Much of the current and future spending is coming from the largest tech company “hyperscalers,” such as Amazon, Google, Microsoft and Facebook parent Meta. Multiple other data center operators, investors and suppliers are responding to the AI build-out.
LG Electronics, a division of the South Korean industrial giant, said it is expanding its global chiller manufacturing capacity with its first facility in the U.S., planned for a 43-acre site near Windsor in southeastern Virginia. Production is scheduled to begin in the first half of 2027 at a 350,000-square-foot industrial building completed in 2025 by developers of the Shirley T. Holland Intermodal Park, according to an LG statement and regional reports.
The new plant is expected to employ more than 150 people and is part of LG Electronics’ strategy to "expand production capacity for advanced cooling technologies and better serve the rapidly expanding customer base in North America,” Don Kwack, CEO of LG Electronics North America, said in the statement.
LG plans to invest more than $100 million in the new U.S. facility and expansions of two existing South Korean factories to meet North American demand, the company said. Its first U.S. chiller factory “is addressing the growing need for advanced cooling solutions for data centers across the country,” said Chris Ahn, president of LG Electronics USA’s air conditioning technology division.
In another transaction, leaders of Sabey Data Center Properties, the operator of more than 4 million square feet of U.S. data centers, announced on Monday an expanded investment by minority owner Ares Management Corp. That takes the equity firm’s stake to more than $500 million since the first investment was announced in July.
Sabey Data Center Properties is majority-owned by Seattle-based Sabey Corp. and National Real Estate Advisors LLC of Washington, D.C. A statement from the two companies and Los Angeles-based Ares said new funding will go toward planned U.S. capacity expansion by Sabey Data Center Properties.
Sabey’s development pipeline would take its data center computing capacity from its current 275 megawatts to a planned 737 megawatts by 2033, company officials said. A single megawatt powers up to about 1,000 homes, according to industry standards.